Oil prices steadied this evening after recent sharp losses as traders tracked the Greek debt crisis, positive US data, an Indian rate hike and a demand upgrade from the International Energy Agency.
Brent North Sea crude gained 63 cents to $113.64 a barrel, though US crude slipped 11 cents to $94.70.
The oil market had plunged on Wednesday as investors worried about fresh signs of weakness in the US economy and Greek debt tensions which sent the dollar jumping.
Today, the market received a boost from positive economic data from the United States, the world's top oil consuming nation. New US jobless claims fell last week while housing starts grew more than expected in May.
At the same time, traders expressed concern over India's decision to raise interest rates in a bid to tame high inflation.
Sentiment was also dampened by concerns over a potential Greek debt default that could send shockwaves across global financial markets.
A stronger US dollar makes dollar-priced commodities more expensive for buyers using weaker currencies. In turn, that tends to weigh on demand and prices.
Elsewhere, the International Energy Agency raised its global oil demand forecast for 2011 by 0.1 million barrels per day (mbd) to 89.3 mbd. The Paris-based IEA added that it sees demand rising to 90.63 mbd in 2012, an increase of 0.6 mbd from its previous forecast that was given in December.
More OPEC oil is needed to tame rising prices which have been driven by fundamentals and emerging market demand, which should keep them above $100 a barrel, the IEA said.
